At its latest monetary policy meeting held on 30 May, the Central Bank raised the reference interest rate by 25 basis points to 4.00%. The move constituted the fourth consecutive month of rate hikes after policymakers began to gradually withdraw monetary stimulus following their meeting on 25 February. The decision was broadly anticipated by the market and further increases in interest rates were signalled by the Bank's Governor Jose Dario Uribe. Expanding global and domestic demand, which spur inflation expectations, prompted the Central Bank to act. As the economy remains dynamic, policymakers' decision aims to sustain the current rate of growth while preventing the economy from overheating. In addition, current inflationary pressures remained subdued with the latest reading at 3.0%, which is at the centre of the target range of 2% - 4%. Meanwhile the inflation expectations over the next 12 months index was also on the right track (May: +3.2% year-on-year). Additionally, the Central Bank announced that it will maintain its daily dollar purchases of USD 20 million until at least the end of September, in order to alleviate the appreciation of the Colombian peso. Owing to strong economic growth, solid financial conditions and an improving political situation, Moody's raised Colombia's credit rating into investment-grade territory for the first time in 12 years. The rating agency upgraded the foreign-currency government bond rating from Ba2 to Baa3 with a stable outlook. The next monetary policy meeting is due to be held on 17 June.
Colombia Monetary Policy
Central Bank tightens reins amid buoyant growth
May 30, 2011
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Colombia Economic News
October 7, 2016
In what was a narrow and shocking result, Colombians rejected the peace agreement between the government and the FARC at the 2 October referendum.
September 30, 2016
In August, exports grew 7.0% over the same month last year, which sharply contrasted the 27.3% plunge recorded in July.
September 30, 2016
The seven-member board of the Central Bank (BanRep) unanimously decided to keep the reference interest rate unchanged at 7.75% at its 30 September monetary policy meeting.
September 16, 2016
Industrial production unexpectedly shrank 6.2% annually in July, which contrasted the 6.7% increase seen in June.
September 5, 2016
The Central Bank’s (BanRep) efforts to fight inflation through tighter monetary policy seem to be finally paying off.